Page 119 - Week 01 - Tuesday, 22 February 1994

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TREASURER FOR THE AUSTRALIAN CAPITAL TERRITORY

LEGISLATIVE ASSEMBLY QUESTION

Question No. 1130

Bank Accounts Debit Tax

MRS CARNELL - Asked the Treasurer upon notice on 14 December 1993:

In relation to Bank Accounts Debit (BAD) Tax - Has the Government considered the introduction of a BAD Tax; if so in relation to the ACT what is the estimated revenue yield if BAD Tax were to be imposed (a) at the scale applied in New South Wales and South Australia; and (b) at the scale applied in Victoria, Queensland, Western Australia, Tasmania and the Northern Territory.

TREASURER - The answer to the Member's question is as follows:

When the Commonwealth transferred BAD tax to the States and Territories, the Kaine Government chose instead to increase the rate of Financial Institutions Duty (FID) broadly in line with estimated BAD revenue.

A working party of Commonwealth, State and Territory officials is examining ways of simplifying the system of financial transaction taxes currently imposed throughout Australia. Its report may result in significant changes to the financial transaction tax system.

It would be pre-emptive of the Government to consider introducing a BAD Tax prior to release of the working party report.

If a BAD Tax was introduced in the ACT at the scale applied in (a), which includes Victoria, estimated revenue for 1993-94 would have been in the order of $10.8m.

If a BAD Tax was introduced in the ACT at the scale applied in (b), estimated revenue for 1993-94 would have been in the order of $5.4m.

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